Transforming Education Financing: Propelld's Innovative Approach in India

Revolutionizing Access to Education Loans

In India, gaining admission to college is a significant challenge, but securing the necessary funds for education can be even more daunting. As aspirations soar nationwide, the availability of affordable education financing remains inconsistent and often exclusive. Traditional financial institutions typically require land documents and salary slips, creating a system that favors individuals with formal incomes, established credit histories, and urban residences.

For students from low-income backgrounds, first-generation learners, and families dependent on daily wages or informal earnings, the existing system provides little support. In this context, Propelld, a fintech company based in Bengaluru, is striving to change the narrative. The startup advocates for evaluating students based on their potential rather than their financial documentation, making a compelling case for a reimagined approach to education financing in India.

Founders with a Vision

Established in 2017 by three childhood friends and IIT Madras graduates—Victor Senapaty, Bibhu Prasad Das, and Brijesh Samantaray—Propelld was born from a genuine desire to address a pressing issue. Despite enjoying successful careers in lucrative positions, the trio felt a disconnect between their work and the societal impact they wished to create. Their discussions, initially casual, evolved into a business concept focused on the underserved yet promising sector of education financing.

The Current Landscape of Education Loans

According to a CRISIL report, India's education loan market reached ₹1.65 lakh crore by December 2023. However, access to these loans is highly imbalanced, with 57% of the total loan amount allocated to students studying abroad. The remaining loans are predominantly directed towards students from prestigious institutions or financially stable families. Those seeking domestic education, particularly in Tier 2 and 3 cities, often find themselves overlooked due to a lack of formal income, credit history, or collateral.

Innovative Lending Model

The founders recognized an opportunity to create a unique lending model that does not reject students based on their family's financial documentation. Propelld's innovative approach lies in its alternative underwriting model, which transcends the conventional metrics employed by traditional lenders. Rather than solely relying on CIBIL scores or income tax returns, Propelld conducts assessments at the household level, considering informal income sources, the student's earning potential, the reputation of the educational institution, and the support systems available to the borrower. This enables them to provide education loans without collateral, with approvals granted within 24 to 48 hours through a fully digital process requiring minimal documentation.

Impact and Growth

Since its inception, Propelld has disbursed over ₹4,000 crore in education loans, aiding more than 400,000 students across 17,890 pin codes in 28 states. The company operates across various sectors in higher education, including domestic and international studies, test preparation, and skill development programs, positioning itself as the only comprehensive education-focused lender in India. While traditional lenders often adopt a one-size-fits-all approach, Propelld's strategy is customized, adaptable, and informed by real-world conditions.

A New Era in Education Financing

Propelld's clientele includes children of farmers, gig workers, small business owners, and others who typically would not qualify for loans from mainstream banks. Remarkably, Propelld's results challenge conventional risk perceptions, maintaining a non-performing asset (NPA) ratio of less than 1%, a figure that is not only competitive but also industry-leading.

The launch of Edgro, Propelld's fully owned, RBI-registered NBFC in 2023, has enhanced the company's operational efficiency. With Edgro, Propelld manages the entire lending process, from origination and underwriting to disbursement and collections, allowing for quicker iterations, more accurate pricing, and a seamless experience for both students and educational institutions. This also enables Propelld to develop innovative products, such as moratorium-based repayment plans and flexible co-applicant options, which traditional banks often struggle to offer due to outdated systems.

Future Aspirations

With ₹507 crore (approximately USD 61 million) in equity funding from prominent investors like WestBridge Capital, Stellaris Venture Partners, and India Quotient, Propelld has steadily expanded its operations while remaining focused on its niche. In May 2025, the company secured $30.5 million in its Series D funding round, further propelling its efforts to enhance its presence and broaden its reach.

Victor Senapaty, co-founder, states, "Our aim has always been to transform financing from a barrier into a stepping stone. If a student possesses ambition and capability, their background should not hinder their progress."

A Partner in Education

The model appears to resonate well, with partner educational institutions demonstrating strong repeat engagement, and organic growth driven by word-of-mouth referrals in new regions. Crucially, students and families who were once overlooked by banks are now finding not just a lender, but a supportive partner in their educational journey.

While India's education finance system still has significant challenges ahead, Propelld's initiatives provide a potential framework that merges empathy with data, speed with integrity, and access with accountability. Whether assisting a student preparing for competitive exams, a young woman pursuing a master's degree abroad, or a working professional seeking to upskill for a brighter future, Propelld is quietly facilitating their advancement—not by lowering eligibility standards, but by redefining what eligibility means.

Redefining Access to Education

In doing so, Propelld is not only enhancing access to education but also reshaping the very concept of who is deemed deserving of it.